Swift approval for DFI vehicles owned by gov’t employees moving to Peninsula, Sabah, S’wak

LABUAN: Government employees with vehicles registered in duty-free islands (DFIs) Labuan and Langkawi, enjoying a 50% duty exemption, can now breathe a sigh of relief.

The Finance Ministry has announced that immediate approval for vehicle transfers outside the Peninsula, Sabah and Sarawak will be granted starting Dec 1, 2023.

The ministry's tax section chief Hazlan Abdul Aziz said the new policy streamlines the process, allowing eligible individuals to seek approval directly from the Labuan or Langkawi customs office.

"This means bypassing the traditional route through the Finance Ministry, provided all documentation is complete and the specified conditions are met.

"This move aims to facilitate the relocation of government employees, ensuring a smoother transition for those transferring out of these duty-free zones,” he said at a briefing with government employees in Wisma Kastam here on Friday (Nov 17).

Hazlan said the exemption policy has been a longstanding benefit for vehicle owners in DFIs, and this update further enhances the efficiency of administrative procedures associated with such transfers. -Bernama